Nearly two dozen companies have faced regulatory action this week for violations of listing regulations. While the quantum of penalties has been minuscule vis-à-vis the size of these companies, the development has put the spotlight on important issues such as appointing women directors and having a proper board composition.
The stock exchanges, which also act as first-level regulators, have slapped penalties on companies such as ACC, Rail Vikas Nigam, Indian Oil Corporation, Adani Enterprises, and GAIL (India) for violations of listing regulations, mainly around the appointment of women and independent directors, as disclosed by individual companies.
In cases where there are no women independent directors, the penalties issued amount to Rs 5.37 lakh. Some companies have disputed the action on